Finance Training Picture?

What is Your Role? Picture? Together, you have primary responsibility for all your society’s finances – starting with the budget You are responsible for paying in money received through events and fundraising, and for authorising all expenses (presidents only where treasurer is claiming). You must attend Executive Committee meetings and Society General Meetings, and present a detailed summary of the society's accounts at the Society’s Annual General Meeting You must attend Societies Guild General Meetings, together with any training which the Guild requires.

What’s in Your Account? Picture? Union Fund Club Fund

Union Fund Picture? What gets paid into your Union Fund? Membership fees Any allocations from the Societies Guild What gets paid out of your Union Fund? Approved, budgeted expenditure Any unspent money is transferred to your Club 1 st August LESS any unspent allocation, which must be returned.

Club Fund Picture? What gets paid into your Club Fund? Any money from the previous year’s Union Fund Any money you raise for your society during the year. What gets paid out of your Club Fund? Any expenses incurred on behalf of the society - so long as the expenditure benefits all members (usually excludes alcohol) is not incurred for an illegal purpose, or for a purpose which conflicts with the constitution or code of conduct.

Important All income and expenses MUST go through your society’s official bank account – NEVER offset expenses against income and pay in the difference. This avoids VAT so is ILLEGAL. It is also illegal for a society to open a separate bank account, or for any member to pay any society money into their own account. BUT - If your society raises money for CHARITY you must either claim expenses from your Club Fund – if members agree - or deduct them from the money raised, then pay the remainder into the RAG account. This is because the SU is a registered charity, and so cannot make direct payments to other charities. It is not illegal because no VAT is levied on money raised for charity.

What is the budget FOR? Picture? Prioritisation framework – the society, the members, the committee Planning – events, activities, income vs expenditure Funding – Societies Guild allocation, member contributions, fundraising, crowdfunding etc. Incentives –less ‘fire-fighting’, acquisition of key skills, meeting standards

The Budget Form Picture? Each society must submit a budget using the required form, and this must be approved by the Guild. If you want to spend more than you are likely to receive in memberships you will either receive an allocation or be asked to subsidise the cost in some way – usually a mixture of both. When making allocations, priority is given to expenditure that will maximise returns or provide members/students with a unique benefit Anything paid out of your Union Fund must be included in your budget, and have been approved If you change your plans during the year, you must complete a supplementary budget form.

Value Added Tax Societies must pay VAT at a rate of 20% on any income they receive. For example: Membership costs £ you get £4.16 and HMRC gets 84p Event ticket costs £15.00 – you get £12.50 and HRMC gets £2.50 Cake sale raises £50.00 – you get £41.67 and HRMC gets £8.33 You can claim back any VAT you pay when you buy goods or pay for travel but only if you ask for a VAT receipt when you pay. Even shops like Tesco are happy to do this, but you must ask. It is very important to allow for VAT when calculating your income versus costs, or you may make a loss. *To calculate the VAT just divide by 1.2 *

Claiming Expenses Picture? Normally, members pay for items upfront, then claim back expenses – however, we can pay larger amounts upon invoice, or purchase items on your behalf. (NB – invoices MUST be made out to the University of Essex Student’ Union.) Expenses forms must be completed by the person claiming the money, and signed by the Treasurer. However, if Treasurers are claiming expenses themselves, then the form must be signed by the President. Reimbursements are usually made in cash, so bring ID. Large sums (c.£200) will be paid via bank transfer, so please provide your details along with the form.

External Speakers Picture? Societies cannot pay fees to external speakers. You can however pay their travel costs, the cost of a meal (excluding alcohol) and the cost of printing any materials. If a member collects a speaker by car, petrol costs may be refunded at a rate of 25p per mile.

Sponsorship Societies are allowed to seek sponsorships from external organisations, so long as: the sponsor’s aims do not conflict with Students’ Union policy the agreement is approved by the Societies Team and signed by the Finance Director of the Students’ Union. SOCIETY REPRESENTATIVES ARE NOT PERMITTED TO ENTER INTO ANY FORM OF CONTRACT ON BEHALF OF THEIR SOCIETY. REMEMBER – MOST CONTRACTS ARE NOT FORMAL, SIGNED DOCUMENTS. MANY ARE ESTABLISHED BY A CONVERSATION, TEXT OR SOCIAL MEDIA MESSAGE, OR

Weekly Reports Picture? Treasurers and Presidents receive weekly automated reports stating the current balance and transaction history of their society’s account. You should check through them carefully to keep track of expenses, and identify any errors.

Any Questions? Ask now! Budget Workshops -